MWB Group Share Discussion Threads

[phuckerty] 29/7/2006 17:03

Hi
Well i guess the proof is in the pudding as this share is now £2.03p and in nine/twelve months time my take is closer to £3.00 per share.
The one thing that puzles me is there is no mention of this share in the tip sheets apart from sci strange as this is a screaming BUY.
Regards

[phuckerty] 17/6/2006 12:31

Hi
Nice two page spread in this months small company investor telling readers to buy into mwb.
Regards

[phuckerty] 28/5/2006 13:33

Hi
MWB are buying a hotel in Glasgow.
Regards

[daftvader3] 25/5/2006 16:30

thank you sharw

[sharw] 23/5/2006 10:48

It is part of the closing auction process for shares traded on SETS. To learn about it go to:



and click on "Guide to trading services v10.5" in the right hand column.

[daftvader3] 22/5/2006 23:55

price monitoring what,s that when it,s at home

[sharw] 10/5/2006 19:48

phuckerty-

First bought Aug 01 and spent several years regretting it but it is coming right now although it will not be brilliant as %p.a. I roughly trebled my holding at 154.65p just before the results in March when I finally convinced myself that there was still plenty more upside. Of course, with the benefit of hindsight, I dearly wish I had topped up heavily when the price was below 40p in 02 and 03, or even when it broke 100p in 05! This is now my third largest holding, the other two being QTA and AVV.

As I have said before, the price that we will eventually receive will depend on how the market values Malmaison/HdeV at the time.

The next (and possibly last) major disposal is the West India Quay Marriott where, I am told, the restaurant's speciality is lasagne.

[phuckerty] 10/5/2006 18:43

Hi sharw
My take on the share price come the day of judgement next year is £2.50 - £2.70 depending how the sale of assets goes.
Incidently i have been in this share since the days of Ex-Lands how long have you been in this one?
Regards

[sharw] 10/5/2006 10:41

The sale of the Park Lane Marriott was announced this morning for £4m above book value. That's an extra 4p per share taking my 238p in the last post to 242p.

[sharw] 07/5/2006 18:22

Roughjustice and phuckerty - welcome to the party.

It has been generally overlooked by the press but there was a two page buy article in the IC (21st. April pp46-7). I was pleased that they got the same figure (232p) as in my post 52 above! (That's the RBS rate before the current market uplift for hotels). It is also worth noting the buyback of over 10% of the share capital at up to 175p since the results (lifting the 232 to 238) and that the company is still committed to dissolving itself by the end of next year. The current bid fever for DeVere (there are now three possible bidders circling if you believe the press) bodes well for any valuation of Malmaison/HdeV.

[roughjustice] 22/4/2006 17:17

Well I am joining the party, about to start building a holding in MWB.

[t0rnado] 30/3/2006 20:00

Outstanding reading !!

[sharw] 30/3/2006 19:55

Well, I thought the results on Tuesday were quite good. The key figure was NAV of 172p on the basis of taking market value rather than assets of the two parts already quoted.

My expectation that the float of Malmaison/HdeV would be announced was not met but the phrase "not currently listed" implies it is still just a matter of time. I am still trying to evaluate the likely value. Looking at DeVere (DVR) and InterContinental (IHG) over the last 6 months would certainly give an uplift to the 'figure you first thought of'. In this case we have the following in the report:

"In addition to this, shareholders should be aware that the Adjusted Equity Shareholders' Funds of 172p per share above does not include any increase in value for the Malmaison business, as this is not currently a separately listed company for which a market value can be readily demonstrated. However, the Board is confident that the value of the Group's share in this business is significantly higher than the £76.2m or 70p per share for this business, within Equity Shareholders' Funds, thus further demonstrating the underlying equity value of the Group".

and...

"At Malmaison, the UK's leading boutique lifestyle hotel business, its implied value as a result of The Royal Bank of Scotland's £30m equity investment in July 2005 is significantly higher than the net asset value of our retained interest in this business. We believe this is further underpinned by the continuing growth being achieved by the Malmaison management".

and...

"The new equity was provided by The Royal Bank of Scotland, which subscribed £30m of preferred equity carrying a priority return of 5% per annum. As a result of this transaction, RBS now owns 17.5% of Malmaison Holdings Limited, the holding company of the Malmaison and Hotel du Vin hotels with effect from 26th July 2005".

Now preferred 5% equity is not the same as ordinary equity but if we assume that it is then if 17.5% is £30m then the whole is £171.4m and MWB's stake is £141.4m. Take the 70p/share above and you get an uplift of 60p/share. That would turn the current 172p into 232p even before the general uplift in the hotel sector and the operating improvement in Malmaison. Interesting.

As for the market reaction, I noticed a continuous procession of 5k share deals on the order book on Tuesday which sent the price down but yesterday and today it has moved back up.

Here's hoping.

[Abuse team] 26/3/2006 17:21

Post removed by ADVFN

[callumross] 26/3/2006 17:20

good post sharw - fingers crossed for tuesday!

[sharw] 26/3/2006 15:23

What a quiet board - this will be the third post this year.

FWIW I have topped up prior to the results on Tuesday. The reason is that I think that, in addition to the results, Tuesday could see the next big announcement - the partial float of Hotel du Vin/Malmaison.

Liberty has been quoted for some time and last December MWE was partly floated. This was a success in terms of the eventual return to shareholders such that in the RNS of 16/2 it is pointed out that if the market value instead of consolidated assets is taken into account there is a surplus of 12p/share on Liberty and 39p/share on MWE taking the total to 152p/share. IMHO that is nothing compared to the uplift when HdeV/M is floated. In the past hotels have tended to be priced below NAV, but no longer - just look at what is happening at De Vere.

An interview with the chief exec. in the Telegraph last July included the following:

'However, the most valuable part of the group is the Malmaison hotel chain, acquired for £80m in 1999, and the Hotel du Vin group, bought for £66.4m last year. The hotels division is now trading profitably and could be worth as much as £300m.

Balfour-Lynn wants to bulk the group up from its 16 hotels to 25 and is planning a partial flotation early next year with a full demerger to follow.
"You can't value that lot as a property company," Balfour-Lynn says. "By demerging them we will create, or make transparent, the latent value that we believe is there that no one has been able to see."'

That is what I rest my hopes on.

[finess] 14/3/2006 09:53

Well I,m back in after a while on the sidelines, i had a good run last year lets hope we go on from the 160 level as the chart indicates it should. IMHO

[phuckerty] 06/2/2006 11:59

Hi
This company is now looking very interesting indeed and i think they will meet thier target and return the said amount to shareholders by the date they gave in the last set of results.

[phuckerty] 18/10/2005 19:17

Hi sharw
Yes for my sins i am one and the same, but i think come the day of reckoning with this share we will all be very pleased indeed.
Regards

[sharw] 16/10/2005 18:18

phuckerty - I take it that you are the same person as Silver Dollar at iii (either that or a plagiarist). My comment there was:

Be careful - that is not what the article in the Times says. It says that MWB has been offered £80m for the whole of Liberty, not its stake, which is 68%.

Nevertheless that should give a boost to MWB's NAV which was declared at 145p at the last year end, which compares to Friday's close of 141.25. MWB is committed to returning this to shareholders by the end of 2007, but don't forget that there is an incentive scheme in place by which management will cream off a hefty slice of surplus NAV (see RNS 17/2/04).

[rambutan2] 16/10/2005 12:01

right, got it...

in my view its worth much more than 360p. so i hope that they dont feel under pressure to accept a deal yet. world famous luxery good brands are in very short supply.

[rambutan2] 16/10/2005 11:57

phuckerty, where's your info from?

[phuckerty] 16/10/2005 11:33

Hi
MWB have been offerd 80 million for thier stake in Liberty so it looks like the fun is begining to start as this should highlight just how undervalued MWB are.
Regards

[phuckerty] 02/10/2005 13:31

Hi
Looks like the mafket is begining to realise the potential of this company a re- rating is begining to take place.
Regards